GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » RF Industries Ltd (NAS:RFIL) » Definitions » ROIC %

RFIL (RF Industries) ROIC % : -2.48% (As of Jul. 2024)


View and export this data going back to 1997. Start your Free Trial

What is RF Industries ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. RF Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2024 was -2.48%.

As of today (2024-12-15), RF Industries's WACC % is 4.99%. RF Industries's ROIC % is -9.14% (calculated using TTM income statement data). RF Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.


RF Industries ROIC % Historical Data

The historical data trend for RF Industries's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RF Industries ROIC % Chart

RF Industries Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.01 -0.36 15.27 4.08 -3.94

RF Industries Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.23 -4.54 -7.55 -16.79 -2.48

Competitive Comparison of RF Industries's ROIC %

For the Electrical Equipment & Parts subindustry, RF Industries's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


RF Industries's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, RF Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where RF Industries's ROIC % falls into.



RF Industries ROIC % Calculation

RF Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2023 is calculated as:

ROIC % (A: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Oct. 2022 ) + Invested Capital (A: Oct. 2023 ))/ count )
=-3.797 * ( 1 - 27.58% )/( (69.809 + 69.608)/ 2 )
=-2.7497874/69.7085
=-3.94 %

where

RF Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2024 is calculated as:

ROIC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=-1.676 * ( 1 - 6.87% )/( (64.049 + 61.902)/ 2 )
=-1.5608588/62.9755
=-2.48 %

where

Note: The Operating Income data used here is four times the quarterly (Jul. 2024) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


RF Industries  (NAS:RFIL) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, RF Industries's WACC % is 4.99%. RF Industries's ROIC % is -9.14% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


RF Industries ROIC % Related Terms

Thank you for viewing the detailed overview of RF Industries's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


RF Industries Business Description

Traded in Other Exchanges
Address
16868 Via Del Campo Court, Suite 200, San Diego, CA, USA, 92127
RF Industries Ltd is engaged in the design, manufacture, and marketing of interconnect products and systems, including coaxial and specialty cables, fiber optic cables and connectors, and electrical and electronic specialty cables. The company operates through two segments: RF Connector and Cable Assembly, which consists of the Connector and Cable Assembly Division, and Custom Cabling Manufacturing and Assembly, which consists of its subsidiaries. The company has operations in the United States, Canada, Israel, and Mexico.
Executives
Mark Holdsworth director 140 S. LAKE AVE., STE. 304, PASADENA CA 91101
Robert D Dawson officer: President and CEO 7610 MIRAMAR RD., BLDG. 6000, SAN DIEGO CA 92126
Kay Lee Tidwell director C/O HUDSON PACIFIC PROPERTIES, INC., 11601 WILSHIRE BLVD. SUITE 1600, LOS ANGELES CA 90025
Jason Cohenour director 47669 FREMONT BLVD, FREMONT CA 94538
Ray Michael Bibisi officer: Chief Operating Officer 7610 MIRAMAR RD, BLDG 6000, SAN DIEGO CA 92126
Sheryl Lynn Cefali director 7610 MIRAMAR RD, BLDG 6000, SAN DIEGO CA 92126
Edward Joseph Benoit director 7610 MIRAMAR ROAD, BUILDING 6000, SAN DIEGO CA 92126
Marvin Fink director 7610 MIRAMAR RD., SAN DIEGO CA 92126
Howard F Hill officer: President, CEO 7610 MIRAMAR RD, SUITE 6000, SAN DIEGO CA 92126-4202
Peter Yin officer: Chief Financial Officer 7610 MIRAMAR ROAD, SUITE 6000, SAN DIEGO CA 92126
Gerald T Garland director
Mark Turfler officer: Acting Chief Financial Officer 7610 MIRAMAR ROAD, BUILDING 6000, SAN DIEGO CA 92126
William Reynolds director 7610 MIRAMAR ROAD, BLDG. 6000, SAN DIEGO CA 92126
Johnny Carl Walker officer: President 2217 RAVINIA DRIVE, ARLINGTON TX 76012
James Doss officer: Chief Financial Officer 1 CORPORATE DRIVE, SUITE C, CRANBURY NJ 08512